New threat to post offices as watchdog warns one in three may close after sell-off

More than one in three post offices could be closed under Government privatisation plans for the Royal Mail, it is feared.

The official customer body, Consumer Focus, believes that the country may be left with only a skeleton post office network.

It says safeguards are needed to ensure key parts of the Post Office role, such as the collection of parcels, are not hived off to supermarkets or other retailers.

Ever decreasing: The number of post offices has dropped from 22,000 to 11,900 since 1980. Consumers worry this will drop dramatically

The branch network has been savaged since 1980, with the number of post offices reduced from 22,000 to 11,900. This was partly due to the Government ceasing to use post offices for payment of most pensions and benefits, which are now automatically put into bank accounts.

Consumer Focus believes the total number of post offices may be cut by a further 37 per cent – 4,400 – to the legal minimum of 7,500, unless safeguards are put in place.

Currently, the Royal Mail pays Post Offices Ltd £343million a year for providing mail services. Once Royal Mail is privatised, this agreement will remain in place for five years, after which time it could shift its business away.

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Andy Burrows, postal services expert at Consumer Focus, said: ‘It’s entirely conceivable, though it seems an odd thing to suggest, that several years down the line you could have a post office network where you cannot undertake mail transactions.’

Customers could drop off their parcels at a supermarket for collection. Letters would still be collected from post boxes.

Mr Burrows added: ‘We need stronger safeguards of the postal contract and subsidy of the post office network in the long-term.’ The National Federation of SubPostmasters believes Royal Mail should be locked into a partnership with post office branches for at least 10 years after privatisation.

Any closures would be directly at odds with the Coalition Government, which says it plans to breathe new life into the network. In October Business Secretary Vince Cable announced a four-year Government support package worth £1.34billion.

Postal Affairs Minister Ed Davey said: ‘Our plans for the Post Office will make it an even more convenient and stronger retail partner for Royal Mail.’